Ryanair has submitted a formal bid of €694 million for Aer Lingus after saying last month it would resume a pursuit of its Irish rival.

Under takeover panel rules, Ryanair had to submit that offer to shareholders today. It is understood the Government has 60 days to respond to the offer.

Ryanair, which owns 29.8 per cent of Aer Lingus, offered to buy remaining stock for €1.30 a share in cash.

Ryanair says its chances of clearing competition hurdles had been boosted by mergers among other European carriers, falling traffic in Dublin that leaves room for new entrants and Government plans to auction the 25 per cent stake it holds in Aer Lingus.